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Technology Stocks : Intel Corporation (INTC)
INTC 34.72-2.3%3:59 PM EST

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To: James R. Barrett who wrote (74802)2/28/1999 1:34:00 PM
From: L. Adam Latham  Read Replies (1) of 186894
 
Jim:

Re: On 12/31/97 INTC had trailing earnings of $3.95. On 12/31/98 INTC had trailing earnings of $3.25...Are you saying that an increase in Gross Margin causes earnings to decrease?

Earlier I caught you making false statements about Intel's gross margin percentages, and here you are again making factual mistakes that easily could have been checked by going to intc.com and looking at Intel's historical financials.

Diluted EPS for 1997 was $3.87, and gross margin percentage was 60%. In 1998, diluted EPS was $3.45, and gross margin percentage was 54%. This seems quite consistent to me, and contradicts your argument. Intel's current guidance is for 1999 gross margin percentage of 57% +/- a few points.

Adam
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